Global Economics

Equipment Makers Target China's New 3G Standard

September 26, 2007

China Netcom and China Mobile are stepping up construction of their respective TD-SCDMA networks in major cities around the country

Chinese landline and mobile communciations carriers have intensified the construction of their respective TD-SCDMA networks in major cities around the country ina bid to take the lead in TD-SCDMA once the government issue licenses for the service.

China Netcom, the second largest landline telephone operator, is putting the finishing touch to its TD-SCDMA network in Qingdao, Shandong province, East China, which is scheduled to be constructed ahead of that of China Mobile, the top mobile telecom carrier.

China Mobile now is working feverishly on TD-SCDMA network construction in eight major cities including Beijing, Shanghai, and Guangzhou.

The TD-SCDMA network of China Netcom in Qingdao is coestablished by Shanghai Bell Alcatel and Shenzhen-based ZTE.

The three parties reached the agreement and signed contracts in May 2007.

So far, China Netcom's TD-SCDMA network has 300 base stations, covering most urban areas and several islands near the coastal city.

Such aggressive moves of a traditional fixed line telephone carrier, industry analysts say, reflect the decisive determination of China Netcom to make a transformation to the most profitable mobile telecom businesses.

As a newcomer in the mobile telecom arena, China Netcom is still working on testing as much as 80 mobile phones from seven brands.

China Netcom is also eagerly awaiting the government to finally issue licenses.

Aside from China Netcom, other Chinese non-mobile telecom carriers such as China Telecom and China Tietong are also applying for mobile telecom licenses.